News - Local
Colorado considers new tactic to tax online sales
Posted: Feb 9, 2010 6:34 AM by Associated Press
Colorado lawmakers are considering a new tactic to go after tax revenue from online sales. They want out-of-state, online retailers to either start collecting the tax or send annual notices to their customers telling them to pay the tax themselves.
The proposal won initial backing in the Senate on Monday. It's part of an overall package of tax bills to help cover a $1.5 billion budget shortfall.
Technically, everyone who buys items tax-free online is supposed to voluntarily report that each year to the state if the purchase would have been subject to tax in state. But hardly anyone knows that.
To help enforce the law, the bill would allow the state to ask large online retailers to provide a list summarizing what each Coloradan bought in the previous year.
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